Investment firm UBS thinks gold could run to $1,300 because of this report. Streible didn't disagree but said it will likely need some additional less-than-inspiring economic data points to arise first.

Gold investors put most of their focus on the monthly payrolls report and the Federal Reserve minutes meetings. Streible added that physical demand for the yellow metal has been strong, especially in coin form.

The Fed will meet near the end of January. If it seems like it is even considering pulling back on its tapering plans, this should thrust gold prices even higher, he suggested.

So where is gold headed in the short term?

Streible concluded that the yellow metal seems most likely to trade down $1,228 this week, before bouncing higher, back to the current $1,250 level.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.